Mortgage arrears following Bereavement

Parkescakes

Hi I'm new to the forum,

I'm after some general advice on behalf of my MIL who has recently become a widow, I'm not 100% sure of figures and dates but will provide what information I have.

My MIL & FIL bought their council house many years ago, at the time my FIL had just been diagnosed with MS and he was not able to get life insurance, my MIL does have life insurance. At a later date, and following the decline in my FIL's condition a remortgage was taken out to enable them to have an extension (downstairs bedroom & wetroom) built on the property My FIL signed this agreement, although his ability to understand it's implications are somewhat doubtful, his condition (and prescribed drugs) effected his short term memory. This remortgage was granted on the basis of his earnings from his BP private pension and the income received in benefits DLA, Carers allowance etc, however it took the final repayment date into both candidates well over 60, my MIL will be 66 this year and still has 5 years left on the mortgage.

Obviously with the death of her partner, my MIL has basically been made redundant after being his carer for 28 years, she is now receiving a small private pension from BP, and the state pension, her small private pension means that she is not entitled to any other benefits.

So far she has managed to make her mortgage payments by using her ISA's & savings, however this is now depleated, she has been to CAB, who have performed a statement of earnings and written letters on her behalf to her creditors making reduced payment offers.

She has had a phone call from Barclays Bank today advising that they will use all of the money paid into her account to pay the mortgage, leaving her with nothing to live on, they have not offered her any help or advice, only to keep making the payments or she could loose her home. She is now at the point that she is considering equity release as she cannot handle the stress of Barclays constantly phoning her (she is already on anti-depresants and really has not been able to grieve the loss of her husband).

My MIL is a very proud woman, who had an exemplary credit rating and is not looking for handouts, however I'm not sure of the legitimacy of a sizeable loan based on the income of a very sick man who cannot get life insurance.

Some of her other creditors including GE Money have already refused her offer of a token amount, stating that if payments are not made in full and on time they will apply charges. She has genuinely reduced her outgoing to as little as possible (actually just £20 a week for food and household expenses) she mostly eats at ours and her daughters home. We wish we were in a position to make up the difference, afterall we will one day inherit the property along with my partners siblings, the bank have already asked if we can take on the mortgage, but this is just not possible with our own financial situation.

Any advice on how to deal with Barclay's would be appreciated, I am considering writing a letter of complaint to a senior member of staff for their handling of this situation, but I'm not sure if it would do any good.

Thank you in advance

Natasha

newbutold

First things first I would get your MIL to open a new bank account with a bank that she doesn't owe Monet to and then arrange for her pensions to be paid into it. Thus stopping Barclays clearing her out.

Also I believe that if your mother writes to Barclays telling them to stop phoning her and that she will only deal with them in writing from now on, they have to respect this.

Hopefully someone more knowledgable will be able to link to such a letter?

I feel for your MIL having all this extra anguish at an already stressful time.

Simon_gloster

A letter of complaint is not going to stop the arrears and phone calls.

It seems the mortgage was agreed legitimately from Barclays point of view if. If you say state of mind was an issue at thatbtime something should have been done then.

The only thing I can suggest is ring barclays and get them to alter the mortgage somehow to reduce payments....or sell and downsize/go into rented.

Harsh I know and i'm sorry, but it is a legal charge and its their right when terms are breached. GE cant take the home (if unsecured), barclays can.

opinions4u

Mortgage payments should be made before unsecured loan payments.

But the reality here is that she can't afford it. Get the property on the market.

afterall we will one day inherit the property

Not being funny, but no you won't. It will be repossessed long before then.

however I'm not sure of the legitimacy of a sizeable loan based on the income of a very sick man who cannot get life insurance.

Of course, I read other threads on this same forum where the life assurance must have been mis-sold because a couple "didn't need it". She benefited from the mortgage and home improvements. Without it, they wouldn't have happened. If she is going to pursue some sort of mis-selling complaint it should be around "why did you agree to lend in to retirement / beyond retirement age".

She is now at the point that she is considering equity release as she cannot handle the stress

selling up and renting would release all the equity.

She has had a phone call from Barclays Bank today advising that they will use all of the money paid into her account to pay the mortgage, leaving her with nothing to live on

Get the money paid into an account with another bank.

Also, ask them how they are complying with BCOBS 5.1.3A that states they need to:

(1)!review the information available and accessible to the firm relating to the consumer's account, on an individual basis, and estimate the amount of any subsistence balance;